To match the rising interest rates in the United States and to manage the selling pressure on the rupee, the Reserve Bank of India (RBI) had to raise interest rates in our country as well.
As a normal person, you should be aware of one fact: the decline is not the result of any negative or declining corporate earnings; Rather, earnings have improved compared to the previous quarter. The decline is entirely due to an imbalance in the liquidity flows in the Indian equity market.
So we remain bullish in the medium to long term.
Several previous publications by various experts have explained the reasons and arguments that ensured India’s top three ranking over the next decade. Our GDP growth, manufacturing growth, China +1 advantage, and now Europe +1 advantage have all helped set the story in the right direction.
On the domestic front, several sectors are witnessing strong revival and growth after being weak for 3 years. Very strong auto sales numbers, 5G roll-out, double digit growth in fertilizers, highest GST collections and huge DII cash figures are all helping the markets. In the near term, there is a shadow of the Credit Suisse crisis and the Russo-Ukraine war, but overall, the positives far outweigh the negatives.
India is still one of the best performing markets in Asia and the world. Historically, the festive months of October to December have seen a spurt in Indian market activity. According to historical trends, the market has risen in 8 out of the last 10 years.*
Equity Market Outlook: Investors need not fear these volatile days; Rather they need to use these periods to add large caps and blue-chips to their portfolio and build wealth. One can invest in large cap funds or large and mid cap funds going through the mutual fund route.
Debt Market Outlook: RBI hike pushes fixed income rates above 7.5% – a welcome relief for conservative investors who depend on fixed deposits for monthly income. However, stay for a tenure of 1-3 years only. Once inflation stabilizes, rates may again revise downward.
The stage is ready; All that is left to make the most of it is to keep calm!!
Many many congratulations and best wishes to all the readers for the festive season.
*Source:
http://bitly.ws/vVy9
Views are personal: Author –
Adil Behram Driver is a Mutual Fund Distributor (Trademark)
Waves – Money Avenue ,
https://www.w-aves.com,
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